Trends in Production Management Software - QDI Strategies, Inc

National Manufacturing Week Conference

Session: 4E51

"Trends in Production Management Software - A

Must Attend for Anyone Evaluating Software"

Michael D. Barr

Principal

QDI Strategies, Inc.

Trends in Factory Automation Systems

Page 2


(Which System Is Right for You?)

• Objective:

- Provide guidelines for evaluating which Production Management Software (PMS) is right for your organization.

• Target Audience:

- Firms evaluating PMS solutions.

• Description:

- Are you trying to evaluate PMS? You're not alone! While the market is so full of noise, fewer than 50 percent of firms evaluating PMS actually purchase the solution they originally consider. Although vendors pitch a wide range of benefits, we found the adoption of a solution is typically driven by one primary goal. Learn seven parameters to help pinpoint the right solution for you.

- Surprisingly, for most firms the driving force is improved performance not manufacturing productivity. We’ll cut through the confusion and focus on providing insights into the true value of PMS. Arm yourself with the knowledge you need to make an informed PMS decision.


Page 3

Mega Trends in Factory Automation

• ERP vendors want access to the

factory

- Factory floor modules used to be

add-ons, they’re becoming

strategic

- vendors are spending more time

promoting these modules

PRODUCTION

MANAGEMENT

ERP

CONTROLS

• Control vendors want to expand their influence in the factory

- As factory management systems grow, the vendors ability to offer unique control systems declines

- vendors want to supply distributed control systems (DCS) or other tools linking control systems to each other and to ERP systems


Page 4

Mega Trends in Factory Automation

• Automated sources of factory floor

information are exploding

- RFID will push back to the

beginning of the assembly line

- Machine vision will continue to

expand

- Voice input is knocking at the

factory door

• Markets will continue to push for customer-specific production

- Customer data imbedded in the product

- CRM enables small target customer groups – with unique product configurations. Product Managers are learning to use these features.

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1101010101

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Customization Customization


Page 5

PRODUCTION

MANAGEMENT

Enterprise

Machine

Factory

Information Architecture

ERP

PRODUCT ORDER

PROCESS

DATA

CONTROLS


Page 6

Lean Manufacturing and

Production Management Software

Representation of

lean processes

Lean processes

independent of computer

representation


Page 7

Defining MES, CPM, and PMS

A real time production management

system, sometimes called:

• Manufacturing Execution Systems

• Collaborative Production Management

• Production Management Systems

Plant Terminology

MESModule

Names

PMS


Page 8

Links to ERP & Supply Chain

CONTROLS

ERP

SCM & APS

MANUFACTURING

MEASURABLES

SPC

WIP &

MATERIAL

HANDLING

TOOL &

MAINTENANCE

MANAGEMENT

PLC / NC

PROGRAMS

ENGINEERING

SPECS

PLCs CNCs

Production

Management CAD / CAM PDM


Page 9

WORK INSTRUCTIONS

WORKFLOW MANAGEMENT

SPC (Statistical Process Control)

REAL TIME, FINITE CAPACITY SCHEDULING

WORK-IN-PROCESS MANAGEMENT

LABOR TRACKING

PRODUCT BUILT HISTORIES

Enterprise

Machine

Component Perspective

ERP

CONTROLS


Page 10

Enterprise

Machine

Component Perspective – Importance/Complexity

ERP

CONTROLS

Built History

18%

SPC

13%

Other

2%

Scheduling

&Workflow

Mgmt.

26%

WIP Mgmt.

22%Labor

Tracking

19%


Page 11

Business Drivers as Described by Users

• Rapidly increasing demand with existing high variation

Efficient utilization is an issue

• Product line changes: increased SKUs and/or customization

- Factory is confronted with new problems

• Significantly more work instructions

• Significantly more scheduling

• Smaller lot sizes

• Competitors are delivering lower per-unit costs

- Equipment must become more productive

Are you facing these

business drivers?


Page 12

Trends in Underlying Manufacturing Issues

Data Capture

9%Tracking

4%

On-Time Delivery

22%

Productivity /

Throughput

65%

Project teams are formed to address a problem;

the initial charter is to understand options.

What’s your key

manufacturing

issue?

Project Drivers


Page 13

Project Team

• Team members come from:

- Project management

- Manufacturing engineering

- Information technology

• Team or team members have multiple projects:

- ERP

- Scheduling

- Quality issues

- Factory flow

• Scope

- Team defines the problem and scope of alternatives

- Team reviews alternatives

- Fuzzy timetable


Page 14

The Competing Solution Is Based on:

Spreadsheets /

Paper Systems

44%Existing System

11%

Equipment

20%

Management

Time

25%

Project teams are generally looking

into PMS as an alternative

management process, not as an

alternative to adding equipment.

Ask vendors to compare

their solution to YOUR

alternative.


Page 15

Finding PMS Solutions

• Chance

- Trade show

- Manufacturing productivity conferences

- Another company used PMS

- Word of mouth

• Suggestions

- Manufacturing engineering sources

- Control vendors are viewed by some firms as a viable solution

provider

Firms are now making more systematic

searches for Production Management solutions.


Page 16

What was built What was built

How it

was built

What

to

build

How to

build

instructions

What was

built

Machine

instructions

Input /

Output

PMS from the Information Management Perspective

ERP PMS

PEOPLE

CONTROLS

PHYSICAL

DEVICES


Page 17

Outcome of the “MES” Project

Primary MES

Lost Budget

Component

Software

SolutionInternal

Solution

Not Cost-

Effective

The trend is to “component” or “internal” solutions.

Fewer opt for complete “MES” solutions.

21%


Page 18

Manufacturing Outcome of the Project

Automated work instruction and

manufacturing flexibility are becoming more important.

Improve Scheduling

25%

Work Instructions

24%Increase Mfr. Variability

19%

Reduce Lot Size

16%

Add Equipment

16%


What’s the right path for you to achieve success?


Page 20

Distinguishing Characteristics of Firms that Fit PMS/MES

Is your organization a fit

for a PMS/MES solution?

Fit No Fit

Don’t have an electronic dispatch (80%) Vs. (55%)

Have problems with tasks being performed

correctly (75%)

Vs. (56%)

Believe tracking data from the factory floor

is valuable (60%)

Vs. (11%)

Have a second-tier ERP System Have SAP, Oracle

Have thousands of SKUs 1 to 500 SKU’s

Assembly lines or job shop manufacturing Cell manufacturing


Page 21

Adoption By Title of Project Creator

% Who Added a Solution

0%

20%

40%

60%

80%

100%

Mfr / Ops

Mgr

Prod.

Control

Plant Mgr. VP Mfg

Sys.

Dir IS Eng. Other

20022005

Adoption of component PMS solutions is being driven by

manufacturing, operations and engineering managers.


Page 22

Aggressive Management of vendors Is the Key to

Finding the Right Solution for You.

• Narrow the discussion to vendors that serve your industry and type of

manufacturing as quickly as possible.

- Telling a vendor they aren’t a fit saves both of you time.

• PMS/MES vendors don’t know whom to take seriously.

- Demonstrate you are a potential customer by telling them:

• Who the team sponsor is.

• What alternatives you have.

• PMS/MES vendors don’t want to spend time educating firms that may not buy or

may not buy from them.

- Focus the vendor on comparing the MES system to your alternatives rather

than other MES systems.

• PMS/MES vendors don’t know when to make the right contacts. Help them align

with your organization by telling them:

- When they need to deal with the project manager / team leader.

- When they will meet the C-level or Plant Manager and what issues will be

discussed.


Page 23

Production

Management

Enterprise

Machine

Automate • Real time, finite scheduling

• SPC

• Work instructions

• WIP visibility

• As-built history

• Labor tracking

Factory Automation

ERP

PRODUCT ORDER

PROCESS

DATA

CONTROLS


Page 24

Seven Parameters to Pinpoint the Right Solution

The solution must: 1. Interface with your ERP system 2. Interface with your existing factory floor data collection systems

• Future compatibility is less of an issue as vendors move to common interfaces

3. Be able to handle ever-increasing amounts of data as your factory floor becomes digital

4. Address your manufacturing environment in terms of: • Number of SKU’s • Dispatch (or initiating manufacturing) • Manufacturing approach(es) (assembly line, job shop, cell)

5. Be acceptable to team members from manufacturing engineering, lean manufacturing (if applicable), and manufacturing information systems • “Acceptable” means the team can use the solution to implement new

manufacturing processes with new management schemes in the future 6. Have proven results in the top 2-3 drivers of your manufacturing success 7. Be able to deliver your primary goal (one business driver) during the initial

implementation • The system’s broad capabilities must not water down the near term win


Thank you.


Hilltop Executive Plaza

1580 S. Milwaukee Avenue

Suite 620

Libertyville, IL 60048

Michael Barr

Principal


(847) 566-2020 x225

Email: [email protected]

Website: www.qdistrategies.com

© 2006 QDI Strategies, Inc.

mailto:[email protected]

http://www.qdistrategies.com/

Date post:	11-Feb-2022
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